Dave Gallant, vice-president of finance and APP operations at the Canadian Canola Growers Association, said the program has moved beyond what it was originally intended to be. The legislation says it is supposed to improve marketing opportunities for farmers by advancing them working capital, yet most farmers are using it in the spring for cash flow.

“Over 65 per cent of the dollars we do, and we do about $2.5 billion a year, use the program from April 1 to the end of July,” he told the Canadian Federation of Agriculture policy summit here.

“A full third of the farmers are using it for its really true basic intended purpose, which is cash flow in the fall so they can pay their bills, so that they can actually develop a marketing plan to maximize the revenue from the products that they produce.”

Few livestock producers use program

Scott Clark, vice-president of marketing and communications at Agricultural Credit Corp., said farmers tell him it allows them to save money on borrowing when other costs keep going up.

ACC is a not-for-profit formed by a coalition of farm organizations to administer the APP and other financing.

The summit heard that very few livestock producers use the program, perhaps one in 10, and that supply managed farms are ineligible even though they may also be producing crops.

Gallant also said the federal government has to stop treating farmers who use the program as if they will all default. It requires the administrators to assess the credit worthiness of all applicants, even if they’ve used it for years without problems.

Other discussions during the day focused on innovation and regulation, competitiveness, trade and succession planning.

Canadian Pork Council re-joins CFA

Meanwhile, a former CFA member is back in the fold.

The Canadian Pork Council, representing nine provinces and 7,000 farms, has rejoined the country’s largest farm organization after leaving it in 2013 over trade policy.

At the time, the council said trade protectionists dominated the organization, but Steven Heckbert said times have changed.

The executive director of the CPC said it was time to join forces with other commodities given the trade uncertainties.

“There’s all sorts of trade pressures on us but also on agriculture as a whole,” he said.

Heckbert said the board wants a common voice for the entire industry, particularly as it deals with the United States.

More to come.

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“The chance to demonstrate our commitment to such an important market is an opportunity that we are very excited about.” said David Typer, chair of the Canadian Meat Advocacy Board, in a Canadian Meat Council news release.

“We will soon begin our search for a China representative. Once the hiring process is complete, operations will be launched.”

The Canadian Meat Advocacy Office is a collaboration between the Canadian Meat Council, Canadian Pork Council and the Canadian Cattle Association.

The group called the office a tangible demonstration that the Canadian pork and beef sectors are eager to have a stronger presence in the Chinese market.

Goals of the office include advancing the interests of Canadian red meat in China, establishing and enhancing the presence of Canadian meat in the Chinese market, addressing market access issues, mitigating potential trade disruption, and building trust with Chinese officials, industry leaders according to a job posting on recruiting website Glassdoor.

Red meat is just one sector that has struggled with fraught relations between Canada and China. In 2019, China blocked shipments of Canadian pork and beef, citing bogus export certificates, as tensions escalated following the arrest of Huawei executive Meng Wanzhou. China also stopped purchasing Canadian canola seed, citing pest concerns.

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Both organizations highlighted the need for an African Swine Fever trade recovery program to regain market access and stabilize the industry in the case of an outbreak. They also expressed their needs for a reliable agricultural workforce and asked the government to prioritize solutions to support the industry’s year-round needs.

“These were important days for our industry,” said CPC chair René Roy. “By joining forces with the Canadian Meat Council, we presented a united front to advocate for the priorities of the Canadian pork sector. Our conversations emphasized the urgent need to address challenges like ASF, expand trade opportunities, and agriculture’s unique labour needs, priorities which are crucial for sustaining and growing our industry. We look forward to continuing to work with policymakers to advance these priorities.”

“Our joint lobby day showcased the power of collaboration,” said Chris White, president and CEO of CMC and Canada Pork. “Together, we were able to effectively spotlight issues affecting both producers and processors in a way that demonstrates our industry’s cohesive vision for the future. We are grateful to all the parliamentarians and officials who joined us and look forward to building on these discussions.”

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Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food, said in a release 29 African Swine Fever Industry Preparedness Program (ASFIPP) projects across the country will receive funding.

Provincial projects include improving biosecurity measures, wild pig management activities, retrofits of existing abattoirs, regional preparation for the welfare depopulation and disposal of healthy hogs, and sector analysis, engagement and education tools, said Drouin.

The Canadian Pork Council (CPC) also received ASFIPP funding to develop an ASFMeter, a portable, low-cost tool for rapidly diagnosing ASF in the field, the organization said in a separate release.

In collaboration with McMaster University in Hamilton, Ont., the CPC said “this innovative program aims to revolutionize ASF detection by providing a convenient and effective solution for on-site testing.”

CPC Chair René Roy said the AAFC/McMaster University collaboration “brings together expertise in research and technology, ensuring that the ASFMeter meets the rigorous standards required for rapid and accurate ASF detection.”

Roy said the ASFIPP funding underscores the importance of research and development in enhancing biosecurity measures within the swine industry, as well as the joint industry/government proactive approach being taken to prepare for potential challenges to ensure the sustainability of Canadian pork production.

A detection of ASF in Canada would immediately stop exports of pork products and live pigs, which could significantly impact the pork industry. The Canadian pork industry exports roughly two-thirds of its pork production and millions of live hogs per year.

In 2023, pork exports were valued at $4.7 billion, excluding the 6.7 million live swine exported throughout the year.

While it has not been found in Canada to date, as it spreads around the globe, it poses a significant risk to the health of the Canadian swine herd, the pork industry, and the Canadian economy, AAFC said.

Since 2018, ASF has spread through parts of Asia and Europe, and was detected in the Caribbean in 2021.

The $23.4 million ASFIPP was launched in 2022 and to help Canada’s pork industry prepare for the possibility of ASF entering the country.

Funding for the projects announced today must be completed by March 31, 2025.

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“This initiative reflects our commitment to strengthening global partnerships and expanding market access for Canadian pork producers,” said CPC chair Rene Roy in a news release.

The Indo-Pacific Agriculture and Agri-Food Office (IPAAO) is a joint effort between Agriculture Agri-food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) is part of a plan to “increase and diversify Canada’s agriculture and agri-food exports to the Indo-Pacific,” Prime Minister Justin Trudeau said in a November 2022 news release announcing the initiative.

China, Japan and the Philippines are among Canada’s top pork buyers, StatCan data shows. Korea and Taiwan are also hefty customers. In recent years, efforts have been also been made to increase sales to Vietnam.

Other Canadian producer groups also expressed hopes the office would further their sectors’ exports to the region.

“The Indo-Pacific provides a unique opportunity for growth and diversification for Canadian pulses,” said Pulse Canada chair Kevin Auch in the federal news release. ” This office demonstrates the Government of Canada’s support for our sector proactively breaking down market access barriers and playing a direct role in expanding exports of high-quality, sustainable pulses across the region.”

“The Indo-Pacific region represents both key established markets as well as diversification opportunities for Canadian canola,” said Chris Davison, president of the Canola Council of Canada in the release.

“Additional resources and an enhanced and sustained presence in the region are important to advancing both market access and market development efforts to support the growth and competitiveness of our industry and the broader sector,” he added.

Long-time Canadian diplomat Diedrah Kelly was appointed as the office’s first executive director, MacAulay announced in December.

IPAAO staff are already in Manila, “working with partners to advance shared priorities, such as food security, create mutually beneficial opportunities, build on strong relationships and enhance technical cooperation, market access and trade,” a federal news release said today.

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“Through this substantial investment, [Swine Innovation Porc] and our partners can spearhead the research needed to deliver science-based solutions for the benefit of Canadian pork producers, processors, and exporters,” said Arno Schober, Swine Innovation Porc’s chair.

Swine Innovation Porc (SIP) is a research and development non-profit with members including Canadian Pork Council and provincial hog groups.

This is the fourth hog research “cluster” funded through the AgriScience Program – Clusters Component, part of the Sustainable Canadian Agricultural Partnership, a Feb. 20 federal news release said. SIP also coordinated the previous three clusters.

In a news release, SIP said that it would spend up to $20.1 million in combined government and industry funding over the next five years on the sector’s research priorities. These include climate change and the environment, sector resilience, economic growth, and communication and knowledge transfer, the SIP news release said.

Research topics include new vaccines, antimicrobial alternatives, feed strategies, and genetics.

Previous cluster research turned up feeding strategies to increase productivity, new biosecurity methods in transport, a tool to classify pork, and ways to decrease antibiotic use and increase pork quality, the federal release said.

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“We have been patient and proposed solutions to safeguard the interests of Canadian farmers and ranchers, yet our concerns remain unaddressed,” said CPC chair Rene Roy in a news release today.

“Setting a precedent for non-tariff trade barriers within the CPTPP must be avoided to protect our industry,” he said.

The CPC said it was joining the “Say No to a Bad Deal” coalition, a group composed of the Canadian Cattle Association, the Canadian Meat Coalition and the National Cattle Feeders’ Association.

The CPC said this move comes in response to “Great Britain’s stance toward Canada,” which it says shows the U.K. “is not interested in free and fair trade in agricultural products.”

Late this January, the Canadian government announced Britain had suspended talks on a free trade deal with Canada amid discontent on both sides about the lack of access to agricultural markets.

The talks – which are separate from the CPTPP – are among a number of negotiations Britain has launched around the world in the wake of its decision to leave the European Union, which excluded it from existing EU free trade deals.

Canada and other nations welcomed Britain into the CPTPP in July. In response, the Canadian Meat Council (CMA), the Canadian Cattle Association (CCA) and the Canadian Pork Council issued a joint statement “strongly opposing” the move.

“The U.K. does not accept Canada’s food safety and animal health systems and measures, and those non-tariff barriers limit our access to the U.K. market,” the three groups said.

In a January news release, the Canadian Cattle Association said, “The UK currently has unlimited access for British beef exports to Canada while Canadian beef producers are unable to export into the UK market.”

The CPC said it aims to remind the Government of Canada of its responsibility to prioritize the best interests of Canadian farmers and ranchers.

“Great Britain’s refusal to truly engage Canada in the current negotiations poses significant risks to Canada’s agricultural sector, and it is crucial we address these concerns head-on before the UK joins a trade deal of which we are a founding member,” Roy said.

The CPC said it “supports fair trade terms that uphold the principles of reciprocity and mutual benefit.”

“Canadian pork producers rely heavily on international markets for their livelihoods, with 70 per cent of production destined for export markets,” Roy said. “Fair trade agreements provide producers with the opportunity to access new markets, diversify their customer base and increase profitability.”

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“No one will be spared the change in market pressures,” wrote Pam Lewison, director for the Washington Policy Center Initiative on Agriculture in a November policy brief.

“What those market pressures do to the overall higher cost of pork, however, won’t be known until the next marketing cycle after implementation,” she added.

Proposition 12, or “Prop 12,” was a California ballot initiative, passed in 2018. It said that meat and eggs could not be sold in California unless they came from animals raised in compliance with the state’s welfare regulations.

This includes foods imported into the state.

While egg and veal producers quickly fell in line, the policy brief said, pork producers—of which 99 per cent live outside California—challenged the law. This included taking the battle to the U.S. Supreme Court, which ultimately upheld Prop 12.

Pork distributors have until the New Year to submit third-party certification of compliance.

According to the brief, the hog industry estimates that the cost of retrofitting penning to comply with Prop 12 will be about USD $3,500 per sow. Proposition 12 specifies that each breeding sow much have at least 24 square feet of space, and have enough space to turn around, extend limbs, etc.

“For an average hog farm of 1,000 pigs, that represents a cost of $3.5 million,” Lewison wrote.

This with a projected average net cash hog farm income of $330,000 in 2023—down 28 per cent from 2022.

Pork producers have struggled this year with high costs in the midst of lowering demand and hog prices.

“Given the downturn in net income, the stark choice facing many small- to medium-sized farm owners may be to sell to larger farms,” Lewison said. “Consolidation in the meat production industry has long been a source of concern for producers, consumers, and even lawmakers.”

“Certainly, pork will become more expensive as both supply constricts and the actual cost of compliance is revealed,” she added.

Canadian concerns

The Canadian hog sector has been eyeing Prop 12 with concern. Canadian producers exported nearly 6.7 million hogs to the U.S. in 2022, including millions of weanlings.

The fear is that if Canada’s national swine housing standards don’t meet California’s regulations, American producers and processors may not want to purchase Canadian animals. However, there has been little clarity as to what the actual effects of Prop 12 will be for Canadians producers.

Also of concern is other states that have similar animal welfare laws in the works.

“We don’t negotiate separate trade agreements with 50 states. We need to be able to have a North American market that’s integrated, allows for the free flow of product and isn’t different in every different state,” said Manitoba Pork Council general manager Cam Dahl in a June interview with the Manitoba Co-operator.

The Canadian Pork Council has said its sees Prop 12 and similar laws as akin to non-tariff trade barriers and has pressed the Canadian government to take up the issue with the U.S.

In late September, the Canadian government told the Manitoba Co-operator it was analyzing the situation and, “considering the U.S.’ obligations under the World Trade Organization (WTO) and Canada-U.S.-Mexico Agreement (CUSMA).”

—Geralyn Wichers is associate digital editor of AGCanada.com. She writes from southeastern Manitoba.

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The Manitoba Pork Council said in a notice to producers Wednesday that the Canadian Pork Council will apply a 10 per cent increase to the prices of PigTrace ear tags and accessories, effective Dec. 15.

Table: PigTrace ear tag price list effective Dec. 15, 2023, including shipping; taxes extra.

As for accessories available from the program, the universal tag applicator will be priced at $30.04; the Retract-o-matic tag applicator, $80.99; a replacement tag pin, $3.50; and a permanent marker, $5.78.

Current pricing will be valid for orders placed and paid by Dec. 14 at 11:59 p.m. ET, the pork council said Wednesday.

The Manitoba council said the CPC “has incurred increased costs for the manufacture and distribution” of the ear tags throughout 2023. “These costs have unfortunately become unsustainable and must be passed on to customers.”

Hog producers can order tags online via their PigTrace accounts, by phone at 1-866-300-1825, by email or by contacting provincial pork offices in their area.

Reporting to PigTrace has been mandatory since 2014 for all people and organizations taking part in movement of pigs. The tag price was last raised in 2019.

“Increased risk from foreign animal diseases such as African swine fever make our traceability program a critical piece of preparedness and zoning activities,” the Manitoba council said Wednesday, adding the use of PigTrace tags for herd management is also encouraged. — Glacier FarmMedia Network

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Practical application can be developed now that the Canadian Food Inspection Agency has released its National Standards and National Framework for the Canadian ASF Compartment Program.

From here, the Canadian Pork Council can develop the Compartment Operator Program, which is designed to segment different hog production and flows within regions that have an ASF outbreak. If specific hog populations can be put into boxes and kept separate, the CFIA and industry hope to see less severe market lockdowns.

“These compartments are established prior to an outbreak and are intended to allow for the export of products even if they were to originate from within an infected zone,” says the CFIA news release announcing the release of the Standards and Framework.

After CFIA called for responses to the idea of compartmentalization, farmers and industry expressed broad support for the idea of a pre-planned response to any ASF outbreak.

However, many were alarmed by the suspicion that government was attempting to dump ASF response responsibility onto farmers and industry. Others were concerned that compartmentalization within regions would undermine attempts to get regionalization accepted by trading partners.

After receiving the responses, CFIA said the worries about downloading responsibilities or undermining regionalization were a “misunderstanding” of the plan’s intentions and that “the compartment program is not part of nor does it replace the regulatory actions that the CFIA may use in response to ASF. Rather, it is an additional tool that industry may decide to implement, which could support business continuity during an outbreak.”

With the Standards and Framework released, the ball is now in the Canadian Pork Council’s court, with farmers soon likely to see the practical steps they will need to take if they want to end up in a compartment.

ASF has never been found in Canada and is not known to pose any human health or food safety risk. It causes fever, internal bleeding and high death rates in infected hog herds, with some strains killing almost 100 per cent of infected pigs. The virus has no vaccines or treatments.

The virus began to spread outside Africa into central Asia in 2007, leading to major outbreaks in China’s domestic hog herd starting in 2018, and has since also reached several European countries via wild pigs.

— Ed White reports for the Winnipeg bureau of the Western Producer.

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